The Foundational Economy

Inquiry5

The Economy, Trade, and Rural Affairs Committee has been set up by the Senedd to look at policy and legislation, and to hold the Welsh Government to account in specific areas. These areas include business, economic development, skills, international trade, agriculture, fisheries and food.

The Committee undertook an inquiry into the foundational economy.

The terms of reference for this inquiry were to examine:

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>>>To what extent has the Welsh Government embedded support for the foundational economy into its overall approach to economic development? What further steps should it take to do this?

>>>Given the cross-portfolio nature of the foundational economy, how should the Welsh Government create a co-ordinated approach to mainstreaming support for foundational economy sectors across government?

>>>Which of the Welsh Government’s foundational economy policy initiatives have been most successful, and why? Which have worked less well, and why?

>>>What examples of best practice exist in different foundational economy sectors and places within or beyond Wales? How could the Welsh Government better support partners to deliver best practice, and to scale it up where appropriate?

>>>What progress has been made in using procurement to strengthen the foundational economy since our predecessor Committee looked at this issue in 2019? What further actions are required to deliver greater progress, and what innovative examples of best practice could be built on?

>>>How effective have the Welsh Government’s actions to deliver fair work in foundational economy sectors been? What further steps should it take within its devolved powers to progress this agenda, and how can it work with the UK Government to drive improvements in non-devolved areas?

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Report
The Committee published its report – The Foundational Economy – on 17 April 2025 (PDF 3.3MB)

Welsh Government response (PDF 166KB)

A debate was held in Plenary on 9 July 2025